The ruble gained against the dollar,
reversing earlier losses, as oil rose for a second day and the
European Central Bank unexpectedly cut interest rates to bolster
the economy.

The Russian currency strengthened 0.1 percent to 30.5 per
dollar at the 7 p.m. close in Moscow after earlier losing as
much as 1.3 percent. The ruble climbed 0.2 percent to 42.06 per
euro, leaving it up 0.2 percent at 35.702 against the central
bank’s target dollar-euro basket.

Crude, Russia’s biggest export earner, climbed 1.2 percent
to $93.58 a barrel. The ECB unexpectedly cut interest rates as
the escalating debt crisis threatens to splinter the euro
region. The ruble fell earlier after German and French leaders
in Cannes halted a bailout for Greece, damping investor appetite
for riskier assets.

Investors pared bets the ruble would weaken further, with
non-deliverable forwards showing it at 30.9563 per dollar in
three months, compared with 31.0759 per dollar yesterday.

Russia’s $3.5 billion of bonds due 2020 rose, pushing the
yield down 15 basis points, or 0.15 percentage point, to 4.266
percent. Ruble notes due August 2016 yielded three basis points
less than yesterday, at 7.98 percent.